Sound Money

There is a joke that goes something like this: A kid asks his Dad for one bitcoin of allowance and the Dad says "What on earth do you need $15,000 dollars for? Do you think we have just $9,000 dollars laying around? Go ask your mother if she has $12,000!". Cryptocurrencies are so volatile that they can feel a lot like gambling. That may be fine for some people but could you imagine making a loan to someone that was payable in Bitcoin? how about if someone wanted to loan you Bitcoin? Would you be comfortable trying to pay them back the same amount plus interest over five years?

Even the most avid Cryptocurrency fans are forced to concede that it isn't practical to lend cryptos due to their volatile nature. This leaves National currencies as the default option for mortgages, business loans, and lines of credit. So long as people need to move their crypto back into cash to pay down debt there will always be a strong demand for inflationary fiat currencies. No true escape has been offered through cryptos until this point.

Folks that lend out cash are not doing great either. The Federal Reserve states that inflation is about two to three percent annually. If a citizen were to make a loan to a friend with a five percent interest rate then they could only expect to keep about half of that as a real gain. If they were to make a long term loan then they expose themselves to the danger of a higher inflationary environment where a lender could lose value on a ten year term loan.

Quint is actually better than both other cryptocurrencies and traditional fiat currencies for loans because Quint is both stable and non-inflationary. Since Quint is a true currency and not a security like other cryptocurrencies it may eventually be adopted as another lending option on both peer-to-peer networks as well as through local Credit Unions.